Volume Off at Wells

$65 billion 1st quarter production
By MortgageDaily.com staff
4/19/2005

Mortgage business was down at Wells Fargo & Company.

Mortgage originations were $65 billion during the first quarter, the San Francisco-based financial services firm reported, off from $69 billion during the prior quarter and unchanged from the same period a year ago.

Retail fundings and correspondent/wholesale fundings each accounted for $27 billion in production, according to the announcement, while home equity loans and lines made up another $8 billion. Volume from Wells Fargo Financial was reported at $3 billion.

"Home Mortgage saw a strong pick-up in application activity in the quarter, as applications of $91 billion increased 14 percent over fourth quarter 2004, and the March 31, 2005, pipeline of $59 billion was up 18 percent from year-end," said home and consumer finance executive Mark Oman.

The owned mortgage servicing portfolio was $840 billion, Wells Fargo reported, and home equity loans were up 34% from a year ago to $53.9 billion.

Net income for the entire conglomerate was reported at $1.86 billion, up 16% from the final quarter of 2004.

Mortgages held for sale contributed to record net income of $1.40 billion for the community banking segment, the report said, and increased mortgage banking revenue contributed to a 25% increase in noninterest income.

"From an operating standpoint our team had a very strong quarter," said Wells Fargo Financial CEO Tom Shippee. "Real estate-secured lending and auto lending both exceeded projections."

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